What to Do When the Rent is Late

It’s rent day, you check your bank account, and the money isn’t there. Now what?

Steps to Handle Late Rent Legally under the RTA

In New Zealand, you can't just change the locks, turn off the power, or slap on a "late fee" (charging late fees is illegal under the Residential Tenancies Act). There is a strict legal process you have to follow:

• Contact them immediately: Check if it was a simple bank error.
• Send a 14-day notice to remedy: If the rent is unpaid, you must issue a formal 14-day notice in writing, giving them two weeks to pay the arrears.
• Apply to the Tenancy Tribunal: If they still don't pay, or if they are frequently late (e.g., three times in a 90-day period with proper notices given), you will need to apply to the Tenancy Tribunal to resolve the issue or end the tenancy.
• Keep a paper trail: Document every text, email, and letter. The Tribunal relies on hard evidence.

The DIY Headache

Chasing late rent is easily the worst part of managing your own property. It’s incredibly awkward to call someone and ask for money. You have to listen to their excuses, and all the while, you're stressing about how you're going to pay the mortgage, rates, and insurance on the rental property this month.

Why You Should Use a Property Manager

Chasing money is awkward and stressful. With First Door, rent collection is automated and our arrears policy is strict and legally compliant. We handle the 14-day notices and the tough conversations so you don't have to. Stop playing debt collector and let us manage your property.